B Mutale has an investment of K12000 in treasury bills He is contemplating on issuing a repurchase agreement of K6500 to be repurchased at K7000 in 3 months on his investment What is the effective rate of interest on this arrangement? If microfinance institutions are offering debt financing at annual rate of interest of 56%. would you recommend Mutale to obtain finance by repurchase arrangement or borrow from the Microfinance institution? [6 Marks]